U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20606 / June 2, 2008
SEC v. Charles O. Morgan, Jr., as Personal Representative of the Estates of Frederick J. Kunen; SEC v. Terry E. Provence and DT Capital LLC, Case No. 07-22204-CIV-GOLD (S.D. Fla.) (Consolidated Cases)
Final Judgments of Permanent Injunction and Other Relief Entered Against Defendants Terry E. Provence and DT Capital LLC
The Securities and Exchange Commission announced that on May 29, 2008, the Honorable Alan S. Gold, United States District Judge for the Southern District of Florida, entered final judgments of permanent injunction and other relief against Terry E. Provence and DT Capital LLC for their involvement in a fraudulent options trading scheme.
Provence and DT Capital consented to the entry of an order enjoining them from future violations of Section 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a)(1) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In addition, Provence was ordered to disgorge $175,677.75 representing his ill-gotten gains plus prejudgment interest, and to pay a civil penalty of $130,000. The money will be paid to the Court-appointed Receiver out of funds frozen by Court order at the outset of this case, and used as part of a distribution to defrauded investors. The Commission dismissed its disgorgement and civil penalty claims against DT Capital.
For more information on earlier actions in this case, see Litigation Release No. 20395 (Dec. 12, 2007).